From demonetization, India is now moving to re monetization. The Central bank has started printing the 200 Rs note and that too for the first time. This step intends to ease the consumer transactions. It is quite easily understandable that this step will add to the ease of operations for day-to-day transaction purposes.
The problem- According to research by the State Bank of India, there were roughly 1650 pieces of Rs 500 notes in active circulation before demonization. With the removal of this series of notes and the implementation of the 2000 Rs note, there was a major drop in the value of notes in circulation.
Filling the Void- The new note will replenish the void that was caused after the withdrawal of the then existing notes of Rs 500 and Rs 1000, which accounted for almost 86% of currency in circulation worth Rs 17.9 lakh cr.
By: Shatrujit Singh Chauhan